Construction Podcast 35: Hidden Costs of Remodeling
Remodelers and other contractors can lose a lot of money if they don’t know the hidden costs in home remodeling projects. Debra Moore, who has been a remodeler for decades, tells all the listeners of this podcast how to eliminate the hidden costs of remodeling and make more money on every remodeling job. Moore, owner of Custom Design/Build, says the hidden costs of remodeling show up in five areas: the clients, the project, the construction business sales and marketing process, site supervision and site specifications. Moore says you need to know all details about your clients’ personalities, expectations and finances, and your ideal clients are the ones you cherry pick. The ideal project is the one that makes you the most profit with the least stress, so you need to assess your team’s strengths and weakness with each project. Moore also says that the sales process is your opportunity to “date” the clients and decide if you want to keep them. During the design process, don’t over promise, clarify limits and expectations, and keep communications open with subs and the clients. Plus, the remodeler says lack of proper site supervision costs you money, lessens the client experience, and increases the callbacks. Finally, have site specs nailed down: site access, dust protection, demo, hauling and cleanup costs, punch list and job costs and warranty work.